nep-ent New Economics Papers
on Entrepreneurship
Issue of 2015‒06‒05
six papers chosen by
Marcus Dejardin
Université de Namur

  1. Political Entrepreneurship, Cluster Policies and Regional Growth By Karlsson, Charlie
  2. Corruption and Entrepreneurship: Evidence from a Random Audit Program By Jamie Bologna; Amanda Ross
  4. Creating the Environment for Entrepreneurship through Economic Freedom By Joshua C. Hall; Robert A. Lawson; Saurav Roychoudhury
  5. By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World By David Margolis
  6. How high-tech entrepreneurs bricole the evolution of business process management for their activities By Severine Le Loarne; Adnane Maalaoui

  1. By: Karlsson, Charlie (Centre of Excellence for Science and Innovation Studies and Jönköping International Business School)
    Abstract: In recent years and not least after the latest financial and economic crisis, we have seen a strongly renewed interest for industrial policy to get the developed economies growing again. The political entrepreneurs, i.e. the politicians and their experts and advisers have been hunting desperately for new approaches to industrial policy. With political entrepreneurs, we here understand politicians/bureaucrats/civil servants/authorities within publically financed activities that with different methods try to stimulate entrepreneurship and self-employment with the overall goal to increase employment and economic growth. The renewed interest for industrial policy and the increased importance of political entrepreneurs motivate that we once again ask the fundamental question about what shall be the proper focus, measures and extent of industrial policy. Shall the industrial policy be vertical and focus at specific industries and even specific companies or shall it be horizontal and focus at improving the general conditions for all industries and firms? However, there is a related and partly more controversial question, namely, what is the proper spatial scale for the policy interventions by the political entrepreneurs? Shall the industrial policy focus at certain places and possibly focus at existing and/or emerging industrial clusters or shall it be spatially neutral and not try to discriminate between different regions and places? The purpose of this paper is to throw some light over all above questions but with some extra focus at the questions concerning the spatial aspects. The above questions are by no means new but there are today very good reasons to throw new light at them not least against the back¬ground of EU´s new industrial and regional policy that aims at achieving ‘smart specialization’, what that now may be.
    Keywords: Political entrepreneurship; industrial policy; clusters; smart specialization; regional growth
    JEL: L38 L52 L53 R11 R58
    Date: 2015–06–01
  2. By: Jamie Bologna (West Virginia University, College of Business and Economics); Amanda Ross (West Virginia University, College of Business and Economics)
    Abstract: In this paper, we examine the effect of corruption on business activity in Brazilian municipalities. Previous research that has examined the impact of corruption has relied primarily on survey or conviction data, which may be problematic as these measures likely to be biased. We use a new measure of corruption that draws upon random audit data of municipal governments’ finances in Brazil. We find that higher levels of corruption cause reductions in the number of businesses operating in an area. Furthermore, we find that these effects become larger over time, suggesting that corruption is more detrimental to long-run economic activity. However, we find that if institutional quality is poor, then higher levels of corruption result in more businesses locating in a jurisdiction. This supports the argument that if there are poor institutions operating in an area, corruption can “grease the wheels†and is an alternative mechanism to help new businesses in the area.
    Keywords: Entrepreneurship; Corruption; Institutions
    JEL: R1 R5
    Date: 2015–05
  3. By: Laura Južnik Rotar (Faculty of Business and Management Sciences Novo mesto)
    Abstract: The paper deals with the problem of youth unemployment and entrepreneurship as a way out of unemployment. The battle against youth unemployment is a top European priority, since the youth unemployment rate is more than twice as high as the adult one, because the chances for a young unemployed person of finding a job are low, because their jobs tend to be less stable, because there are significant skills mismatches on the labor market. Entrepreneurship is a powerful driver of economic growth and job creation; it makes economies more competitive and innovative. The motivation for entrepreneurial career is different with different age cohorts. Youth represent a group with the highest entrepreneurial potential. In the empirical study, we analyze entrepreneurial tendencies among Slovene students of business schools and with factor analysis approach we try to define underlying entrepreneurial tendency dimensions as the literature suggests that entrepreneurial characteristics play an important role in influencing the individual’ decision to become entrepreneurs. We defined four such entrepreneurial tendency dimensions: need for independence and achievement, problem solving, planning, and dealing with uncertain situations. However, the need for independence and achievement and problem solving are the strongest drivers of entrepreneurial tendency. The results of the study can be of help to policymakers when updating labor market policy measures in connection with the educational policy.
    Keywords: youth unemployment, entrepreneurship, competitiveness, self-employment, entrepreneurial characteristics.
    JEL: J21 J23 C38 L26
    Date: 2015–01
  4. By: Joshua C. Hall (West Virginia University, College of Business and Economics); Robert A. Lawson (Southern Methodist University, Edwin L. Cox School of Business); Saurav Roychoudhury (Capital University, School of Management and Leadership)
    Abstract: In this paper we argue that the ability of people to freely trade, enter into contracts, and start businesses in a system of private property and the rule of law is crucial for productive entrepreneurship. One measure of how freely individuals can engage in economic activity is the Economic Freedom of the World (EFW) index. After examining the economic policies that harm economic freedom and possibly entrepreneurship, we highlight the correspondence between economic freedom and a number of measures of entrepreneurship. We conclude with some thoughts regarding future research involving economic freedom and entrepreneurship.
    Keywords: economic freedom, institutions, entrepreneurship, new firm
    JEL: M13 O50
    Date: 2015–05
  5. By: David Margolis (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, IZA - Institute for the Study of Labor)
    Abstract: Over half of all workers in the developing world are self-employed. Although some self-employment is chosen by entrepreneurs with well-defined projects and ambitions, roughly two thirds results from individuals having no better alternatives. The importance of self-employment in the overall distribution of jobs is determined by many factors, including social protection systems, labor market frictions, the business environment, and labor market institutions. However, self-employment in the developing world tends to be low productivity employment, and as countries move up the development path, the availability of wage employment grows and the mix of jobs changes.
    Date: 2014–06
  6. By: Severine Le Loarne (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Adnane Maalaoui (ESG Paris – School of Business)
    Abstract: Purpose: This paper focuses on how entrepreneurs anticipate and change their company's business process management after developing a radical innovation. The paper is based on a critical approach to business process modelling (BPM) that posits that—in spite of all the claims, guides, and tools that companies employ to help them modelise their processes—business processes are developed and improved (or at least changed) by individuals who negotiate, anticipate, and compromise to make these changes occur. Thus, BPM is more a matter of "bricolage" (Levi-Strauss) than an established and defined plan. Based on this position, our paper analyses how a business process model emerges in the early phases of a high tech new venture when the entrepreneur lacks a valid template to form a conceptual representation of the firm's business processes. Design/Methodology/Approach: We adopt a perspective based on the concept of bricolage. By analysing and comparing the discourse of 40 entrepreneurs—20 involved in an activity based on a radical innovation and 20 involved in an activity based on a more incremental concept—we are able to answer the two research questions.
    Date: 2015

This nep-ent issue is ©2015 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.